RD244 - Virginia Enterprise Zone Program 2012 Grant Year Annual Report

Executive Summary:
The 2012 qualification year marked the eighth year under the 2005 Enterprise Zone Grant Act. The 2005 statute replaced the former tax credit incentives with the Real Property Investment Grant (RPIG) and the Job Creation Grant (JCG). In addition to the grant incentives supporting the new program's overall policy, the grants also reflect shifts in business best practices and development trends that have occurred over the past decade. The program's overall policy intent continues to be:

1. A tool to help distressed localities versus a general economic development incentive.

2. A means to increase fiscal accountability associated with state incentives; reflected in new grant monitoring and attestation components.

3. A way to focus on economic situations that can maximize the use of financial incentives and target businesses that create high quality jobs.

The Enterprise Zone Grant Act contains provisions allowing firms to continue to receive the pre-2005 tax credit incentives under specific and limited conditions. The tax credit program will officially sunset at the end of fiscal year 2019.

This report includes information on the usage of the grants and pre-2005 incentives during the 2012 qualification year, paid from FY 2013 funds. The report continues to reflect the implementation of the action by the 2010 General Assembly that modified the JCG parameters for businesses in High Unemployment Areas.